CCAGW Urges House Ways and Means Committee to Oppose Tax Credits for Government-owned Broadband Networks
Letters to Officials
September 13, 2021
The Honorable Richard Neal, Chairman
The Honorable Kevin Brady, Ranking Member
House Ways and Means Committee
Washington, D.C. 20515
Dear Chairman Neal and Ranking Member Brady,
On behalf of more than one million members and supporters of the Council for Citizens Against Government Waste (CCAGW), I urge you to not include the proposed 30 percent tax credit for government-owned broadband networks in your markup of the reconciliation provisions that are under the jurisdiction of your committee.
Congress should not set a preference for government-owned broadband networks. According to a report from US Telecom, privately-owned broadband providers have invested a collective $1.8 trillion over the last 25 years to build the broadband infrastructure. This sizable investment by the private sector has led to extensive connectivity and access across the country, which was vital during the Covid-19 pandemic. Establishing a preference for government-owned broadband networks will lead to increased prices for consumers and more expensive construction costs that will waste taxpayer money.
As noted in the report, The Folly Against Government-Owned Networks, the federal government should enact laws that are vendor and technology neutral that make it easier for the private sector to continue its investment and expand its reach in underserved and unserved communities. Giving government-owned networks a 30 percent tax credit gives these networks preference over private sector providers, creating consumer harm through fewer choices, lower levels of service, and higher prices.
Again, I urge you to oppose any policies that would favor government-owned broadband networks.
Sincerely,
Tom Schatz
President
CCAGW
CC: House Ways and Means Committee Members
